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Stock Terms: Junk Share &Nbsp; What Is Junk Stock?

2011/4/6 13:57:00 70

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Junk Stocks Super Junk Stocks Asset Restructuring

(1) junk stocks

Junk stocks

Refers to the poor performance of the company's stock, and corresponding to the blue chip stocks.

Some of these companies may even enter the loss line due to their poor industry prospects or poor management.

The performance of its shares in the market is sluggish, stock prices are low, trading is not active, and year-end dividends are also bad.

56, the official name of A share A shares is RMB ordinary stock.

It is a common stock issued by a company with a domestic company for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong and Macao investors) to subscribe and trade in Renminbi.

Junk stocks are generally referred to as non investment grade stocks (below BB). Junk stocks are not only the stocks issued by companies operating problems, but some new listed high-tech companies, or some companies with large financial leverage, are likely to be rated below BB level. Many commercial banks in China are classified as junk shares by S&P.

Because the risk of investing in junk stocks is large, the risk return rate is also high. In the late 1980s, the boom in junk stock investment was in the US.

Junk stocks are not garbage!

Junk stocks, as the name implies, are those stocks with poor performance and many problems.

The general earnings per share is 0.

Stocks below 10 yuan can be called junk stocks.

The listed company has the convenience of direct financing in the market, and the care of various preferential policies. The reasonable performance should be quite ideal. However, due to the management leadership of the listed companies, the changes of the market environment and the mechanism, the performance of the listed companies such as "small two black NEW year, one year is not as good as a year".

Some listed companies are listed in order to "cash in the stock market" instead of offering returns to shareholders. After the listing, they did not realize enterprise restructuring, establish modern enterprise system, nor make use of funds returned from the market to effectively develop and expand their strength.

Enterprises still go along the "old road", unable to withstand the test of market economy, and slide down their performance.

With the increasing number of listed companies, the number of shares entering the stock market is also increasing.

The existence of junk stocks does not mean that these stocks have no value. According to the principle of waste utilization in daily life, junk shares also have certain investment value.

Especially when the listed companies are subject to certain restrictions, the listed companies at least have the value of "shell resources".

In the real stock market, some share prices of junk stocks far exceeded the share price of blue chip stocks, especially when the market was hot in 1998, when the assets were restructured.

On the other hand, part of the stock market "big black horse" stocks are generated from junk stocks, such as "Kerry Hua", "ST Tong machine" and "Guo Jia industry". The first 100 yuan stock in China's stock market "Yi an Technology" has also evolved from the previous junk stock "Shen Jin Xing".

Therefore, speculation in junk stocks is still worth considering.

At present, domestic junk stocks can be divided into three parts: one is ST stock, that is, two consecutive years of loss or net asset value less than 1 Yuan stock.

Part of the PT stock is a three consecutive year of stock loss.

Another part refers to the elimination of the first two categories and the stock below 0.10 yuan.

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Criterion 1

The focus of speculation on junk stocks is whether they have been "stolen" or not.

assets reorganization

"The possibility.

Generally speaking, the stock of a listed company is reduced to junk shares, which has a huge relationship with the existing situation of the enterprise.

Therefore, relying on its own strength is often difficult to change the situation of its junk stocks, most of which rely on external forces to restructure it is possible, but not to say, "a group of souls". In the stock market, the story of "failed reorganization" is also reported repeatedly.

However, as long as the stock is restructured, its stock price will deduce the story of "ugly duckling becoming swan swans" in the two tier market. Therefore, we should pay attention to the basic situation of junk stocks. We should pay special attention to those stocks whose shares are dispersed, or those whose stakes are mainly concentrated on the main shareholders of the major shareholders.

At present, after the reorganization of several private stock companies in China, their stock prices are most likely to create myths, but the stocks that have been actively reorganized by the government are usually very common.

Therefore, the focus of speculation on junk stocks is whether or not they will be reorganized.

Criterion 2

We should carefully study the reasons why the stock has been reduced to junk stocks.

Some listed companies fail to make clear their main businesses and lead to poor performance; some listed companies fail to perform well because of poor management; some are dragged down by heavy debts and drag on business improvement, especially those of some listed companies, whose debts are heavy, often at one billion, or lawsuits.

Such companies often show little opportunity and should try not to touch them as much as possible.

Only when the company has undergone a "major operation" can it be concerned.

Criterion 3

Speculation of junk stocks can be noticed at the end of the big market.

Because a wave of market is coming, usually after the market mainstream hot ends, some hot money or withdrawal from the mainstream hot spot funds will be fry on the junk stocks, so junk stocks often have a compensatory effect.

At this point, it can focus on some junk stocks to operate, and there will also be good profits.

In addition, there is another situation: when the stock market is rising, junk stocks will fall, and the "seesaw" phenomenon of junk stocks will rise when the stock market falls. At this time, this phenomenon can be used for speculation, so as to improve the efficiency of fund utilization.

However, we must point out that the above speculation is based on the coming of a big market and speculation of mainstream non junk stocks.

In the case of junk stocks in the year of 1998, under such circumstances, it can not operate this way.

Criterion 4

We should pay attention to risks when investing in junk stocks and arrange timely investment funds.

The performance of junk stocks is not satisfactory, and there are problems of one kind or another.

When we find out whether the company will restructure or have significant new projects, investors can hold stocks or increase their capital with patience. In addition, we should pay attention to risks.

Junk stocks are generally priced at a lower price and are subject to main control, rising rapidly and falling fast. If funds and stop losses are poorly formulated, they will easily lead to losses, and even the problems exposed by some poor companies may be just the tip of the iceberg.

Therefore, investing in junk stocks should be well controlled and cautious.

(two)

Super junk stocks

The so-called super junk stocks, in fact, are "insolvent" listed companies, of course, they are not ordinary junk stocks.

Here, super junk stocks refer to stocks whose net assets per share have been reduced to negative value.

We say that the net asset per share is enough to get rid of the face value, but if the net assets per share become negative, it must be garbage in the garbage, that is, super garbage.